September 2023

Prepared and Distributed by The Midwest Hardware Association, Inc.

Illinois Considers Phasing Out Fluorescent Light Bulbs that Contain Mercury

By Alec Laird, MHA Illinois Lobbyist and Vice President, Government Relations for the Illinois Retail Merchants Association

Environmentalist aim to prohibit the sale of fluorescent light bulbs in Illinois. Veto session is scheduled to take place the last week of October and the second week of November. Generally, veto session is when the General Assembly considers any legislation that was vetoed by the Governor. Sometime advocates attempt to pass “introduced” bills during veto session. Environmentalists are planning to push an initiative to prohibit the sale of fluorescent lights during this year’s fall veto session.


House Bill 2363 creates the Clean Lighting Act and prohibits the sale of certain fluorescent lights that contain mercury in Illinois. Advocates for the legislation argue that by phasing out fluorescents in favor of efficient LED bulbs, states can avert a needless health risk, save families and business money on utility bills, and curb greenhouse gas emissions.

 

The advocates contend that all fluorescent bulbs contain mercury, a potent neurotoxin that threatens human health and the environment. They point to a world Health Organization study that lists mercury among the top 10 most dangerous chemicals impacting public health. They believe that when fluorescent bulbs are accidentally broken—whether in homes, businesses, or the waste management system—the lights present a health hazard to those nearby. And when fluorescent bulbs are not disposed of properly mercury leaches from landfills and eventually contaminates rivers, lakes, and oceans and the fish and shellfish within them. The advocates support a transition to LEDs, which are mercury-free, are a much safer option. Finally from the environmental perspective, the advocates believe that LEDs use approximately half the electricity as fluorescent bulbs to produce the same amount of light. As a result, accelerating the transition to LEDs can reduce planet-warming emissions from power plants and help prevent the worst effects of climate change.


Separate and distinct from the health and environmental concerns, advocates argue that fluorescent bulbs are no longer the most affordable lighting option. Because they are more energy efficient than fluorescents, LEDs cost less to operate, more than paying back their slightly higher upfront costs—which continue to drop each year—through lower electric bills. LEDs also last about twice as long as fluorescents, so they need to be replaced less often. And because LEDs do not contain mercury, a hazardous waste, they can be disposed of more easily and cheaply than fluorescents when the time comes. 

Currently the following states have phased out fluorescent light bulbs that contain mercury:

MHA does not expect the legislation to pass during veto session without an agreement with industry.

Worker's Compensation Insurance Premiums Drop Again

By Misha Lee, MHA Wisconsin Lobbyist

Wisconsin employers will see another overall reduction in worker’s compensation rates for the eighth consecutive year. On par with the 8.47% decrease in 2022, the overall rate will drop another 8.39% beginning next month on October 1, 2023.

The reduced rates are expected to save employers more than $148 million next year on their worker’s compensation policies. The lower rates reflect employers' attention to workplace safety for the benefit of workers and employers alike. Moreover, it's a way for Wisconsin companies to stand out as they seek to attract and retain staff during a time of near-record low unemployment and workforce challenges. The 2023 rate decrease, recommended by the Wisconsin Compensation Rating Bureau (WCRB) and approved by the Wisconsin Office of the Commissioner of Insurance (OCI), marks unprecedented consecutive years that worker's compensation insurance premiums have declined in the state. The actual rates that inform premium amounts vary by employers based on factors such as injury risk exposure and type of employer.


Worker's compensation is a system of no-fault insurance that pays benefits to employees for injuries or diseases related to the employee's work. In return for prompt and certain payment of benefits to an employee, an employer's liability is limited. Wisconsin’s state required worker's compensation program covers medical expenses and lost wages for employees injured while on the job. The independent, non-profit Worker’s Compensation Research Institute (WCRI) ranks Wisconsin tied with the state of Iowa as the lowest of 18 states studied for the time employees spend away from work after an injury, thanks to strong health care networks and return-to-work programs that support a smooth transition back to the workplace.

 

Wisconsin Compensation Rating Bureau (WCRB) President Bernard Rosauer touted the rate reductions last year, stating “The consecutive worker’s compensation rate decreases are remarkable and are partially driven by important factors in which Wisconsin excels compared to many other states. Wisconsin’s results are partially driven by superior return to work, low litigation rates, low benefit delivery expenses, and superior (injured) worker satisfaction.”

 

Worker's compensation insurance rates are adjusted annually by a committee of actuaries from the WCRB. This independent body established by statute examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and approved by the Wisconsin Commissioner of Insurance. While the overall rate level will decrease by 8.4%, the impact to employers will vary based on specific circumstances. The Wisconsin Department of Workforce Development (DWD) Worker's Compensation Division administers the state's WC program through a collaboration with WCRB, OCI, the Self-Insurers Council and the Worker's Compensation Advisory Council (WCAC), which is composed of representatives from management and labor and recommends WC law changes.

 

Most employers in Wisconsin are legally required to have Worker's Compensation insurance policies.

Minnesota Amends Employee Eligibility for School Activities Leave

Implementation Date: July 1, 2023

Minnesota broadens the definition of eligible employee under its school activities leave law, removing the length of service requirement.


School Activities Leave

Minnesota employers with at least one employee in Minnesota must provide eligible employees with up to 16 hours of leave in a 12-month period to attend school conferences and school-related activities related to the employee's child (including a foster child) that cannot be scheduled during nonwork hours.


Effective July 1, 2023, an eligible employee is a person who performs services for hire for an employer. 


If an employee's child receives childcare services, or attends a prekindergarten regular or special education program, then the employee may use the 16 hours of leave time to attend a conference or activity related to the employee's child, or to observe and monitor the services or program, but only if the conference, activity, or observation cannot be scheduled during nonwork hours.


An employee must provide reasonable advance notice of the leave when the leave is foreseeable (i.e., predictable, planned leave). An employee must also make a reasonable effort to schedule the leave so as to not disrupt the employer's business operations.


While the leave may be unpaid, an employee may substitute accrued paid leave for any part of the leave.


Employees returning from leave under this law must be reinstated to their position.


Minn. Stat. § 181.9412Minn. Stat. § 181.940, as amended by 2023 Bill Text MN S.F. 3035.


You should consider including a school activities leave policy in its handbook to educate employees, including supervisors, about the availability of school activities leave and to show its compliance with Minnesota law.

Illinois Amends Gender Violence Act to Include Employer Liability

Implementation Date: January 1, 2024


Effective January 1, 2024, under the Gender Violence Act (GVA), a covered employer may be held liable for gender-related violence committed in the workplace by an employee or agent of the employer when the violence arises out of and in the course of employment. An employer is only liable if it:



  • Failed to supervise, train, or monitor the employee; or
  • Failed to investigate complaints provided directly to management and failed to take remedial measures in response to the complaints.


2023 Bill Text IL H.B. 1363.

Illinois Law Prohibiting E-Cigarette Use in the Workplace Takes Effect

Implementation Date: January 1, 2024


Effective January 1, 2024, the Smoke Free Illinois Act prohibits electronic cigarette (e-cigarette) use in the workplace by defining smoke or smoking to include the use of e-cigarettes. 


2023 Bill Text IL H.B. 1540.

Reminder: Minnesota Metro Area Sales Tax Set to Increase 1% on October 1

From the Minnesota Retailers Association

Starting October 1, 2023, there will be two new metro county area sales and use taxes dedicated to transportation and housing. The new Metro Area Sales and Use Tax for Housing rate will be 0.25% and the Metro Area Sales and Use Tax for Transportation rate will be 0.75%. The total increase in the metro area sales tax will be 1% and the Minnesota Department of Revenue will administer this tax.

 

The 1% sales tax applies to retail sales made into any of the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties. The use tax applies to taxable items used in any of the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties if the local sales tax was not paid.  

 

Who Must Collect the Tax:

All retailers who have a taxable presence (nexus) in any of the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties, even if they're an out-of-state retailer or marketplace, and are registered for Minnesota sales and use tax. This includes all sellers outside Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties if they have a taxable presence such as:

 

  • Have an office, distribution, sales, sample or warehouse location, or other place of business in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties, either directly or by a subsidiary.
  • Perform taxable services in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties.
  • Ship taxable items into Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties, including all sales made using the internet, mail order, or telephone.
  • An out-of-state retailer that exceeds Minnesota sales tax thresholds and make sales into Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington Counties.

 

These tax increases were included in the Housing Omnibus and Transportation Omnibus bills respectively, passed during the 2023 Minnesota Legislative session. They join a number of new taxes passed including a 10% cannabis gross receipts tax that took effect on July 1, 2023, and a new Delivery Tax that will begin July 1, 2024.

 

For more visit: www.revenue.state.mn.us/tax-law-changes

MHA is excited to let you know that we now offer Swipeclock, the leading small business Time & Labor solution.

 

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Thank you for being a valued customer and trusting us to handle your payroll. We know you have many choices when it comes to service providers, and we truly appreciate your business.

Sales Trends April 2023

Here are the most recent Illinois, Minnesota-Dakotas, and Wisconsin hardware store sales trends, gathered from association members using the MHA's monthly accounting services. The figures derived for each region include sales data from the following number of stores:


Illinois - 16 stores

Minn.-Dakotas - 10 stores

Wisconsin - 43 stores

Sales Trends May 2023

Illinois - 16 stores

Minn.-Dakotas - 8 stores

Wisconsin - 41 stores